Three Ways To Prevent Building The Goose That Lays The Rotten Egg

#1. Do you really have a workable idea?

This involves more than running the idea by your friends and family having them say, “cool idea, I’d buy one”. Your mom might buy one, maybe, but even your friends probably won’t unless it’s actually a good idea. Nobody wants to be the first to say you invested your time and money in a bad idea. Do actual research. Who would buy your product/service and how many people are in your target market? If you can’t answer those questions convincingly, you probably want to give it another try.

#2. How much will people pay?

Scrambling eggs inside the shell is certainly a different way to prep your food. But, how much will people pay for this? Some businesses start as loss leaders as they build scale, but you’re probably not starting the next Facebook. Startups need to start making money, like right away. If there’s not enough margin based on the actual market price people will pay for your product, and enough potential volume to make this margin meaningful, you’re already running uphill.

#3. Do people actually need your product/service?

Don’t get me wrong, fortunes have been made on things people don’t need. But, plenty more have been lost. The concept of scrambling an egg inside its shell might be intriguing, but who actually needs or wants another gadget in their kitchen, especially one that doesn’t save any time. Nice to have sometimes works when people are flush, but it’s not a sustainable business proposition. If there’s no real need, there’s probably not a real market, either.

The entrepreneur’s dream is take an idea from concept to reality, make a difference in people’s lives and earn money along the way. Do yourself a favour and answer these three questions to make sure your concept is worth investing in. That’s not a guarantee it will work, but it’ll do much better than just hoping and believing it will work.

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Hunter Hoffmann

Hunter Hoffmann is Head of US Communications at Hiscox insurance and is responsible for media relations, social media, internal communications and executive messaging. Hunter lives in New York City with his wife and two sons - Walker and Otis. In his spare time, he moonlights as Chief Marketing Officer and deliveryman for Junior’s Fresh, a fresh baby and toddler food delivery service and cafe in New York City founded by his wife, Michelle. His passions in life are food, family and the NY Yankees.